Setting up and running your own business is many people’s dream; you can work at your own pace, for yourself, on your own ideas. While this freedom is an attractive prospect, however, the lack of external structure can make setting up a business seem a daunting task at times. But don’t worry, the following article contains a few tips to help you successfully navigate the challenges to be an entrepreneur.
1. Build a Network
An essential resource for developing a successful business is a rich network of mentors, clients, colleagues and even sometimes competitors, that you can turn to for advice, information, or simply for reassurance. While websites like LinkedIn provide an easy virtual networking platform, it is also important to keep up with local networks and participate in communities of like-minded people. Attend physical events wherever possible: a lot of developing a beneficial network has to do with building trust through effective communication, and this can often be easier face-to-face than over the internet: consider how much more meaningful and memorable an interaction is if you can match a face or a voice to a name.
2. Undertake Further Study
In addition to building your network of contacts, courses of further study, such as online MBA programs, can improve your entrepreneurial abilities and enhance your status in the business world. Tertiary business education equips you with advanced theoretical and practical entrepreneurial knowledge, including accounting, finance, marketing, and business law – as such, it is likely to be beneficial in most of the areas that determine entrepreneurial success. Further study also crucially develops leadership skills in a business context, which is paramount to your business’s success beyond the initial launch – good leadership sets the tone for the entire operation.
3. Construct a Detailed Business Plan
A good business plan is crucial to your business’s success. This is often the first thing that potential partners or investors will want to look at, so it needs to be a clear and compelling piece of communication. In it, you should outline your company structure, staff expertise, goals and mission statement, methodology, target audience, market research, and funding options and requirements. In short, a business plan should summarize all of the fundamental aspects of your proposal. Suppose you are unsure about how to approach this.
In that case, various templates are available from private companies or the Chamber of Commerce, which offer further assistance on style and what to include. Remember, the strength of your business plan will likely determine the level of investment you receive, so make sure that it’s the best it can be.
4. Work on Your Financial Literacy
Understanding the complex workings of money and markets can feel overwhelming, but as an entrepreneur, it is very important to have a firm grasp on key financial concepts. This includes understanding profitability and cash flow management, as well as being able to budget, raise funds, and negotiate your tax considerations, risks, and liabilities effectively. Improving your understanding of these things will make you more confident in the running of your business, and, as a knock-on effect, make you a more attractive prospect to investors.
Think about it from their perspective: the more financially literate the investment prospect is, the safer the investment seems. There is a multitude of media available, if this is an area that you feel you might need to work on, from books to blogs to podcasts and newsletters: the importance of a network is paramount here again, too, as often the best way to learn is by simply asking those with more (or different) experience than you.
5. Choose the Right Business Partner and Investors
The people you immediately surround yourself with when setting up your business – your investors and especially your business partners – can have a huge impact on the success of your business. You don’t have to have a partner, of course, although it is often invaluable to have another mind looking at problems from a different point of view, even if they aren’t good at all aspects of business management.
Imagine that you are a 7/10 entrepreneur, and they are only a 3/10: as long as their 3 are different to your 7, between you, your business scores 10/10. Despite this, it is certainly worth taking the time to pick the right partners for you. Think carefully about the skills, motivations, and specialties of anyone you are considering going into business with – do they match the company ethos, and do you think they can bring a valuable new perspective to the management of your enterprise?
6. Do Market Research
Last, but by no means least, it is vital that you know who your product or service is aimed at, and if there is sufficient demand for it – otherwise, your business is likely not to succeed. Market research includes (but is not limited to) finding out how much your target audience is willing to spend on a particular product, identifying consumer trends in your industry, and establishing an understanding of your competition.
Market research can be either primary (e.g. surveys) or secondary (e.g. census data), but regardless of which sort you’re engaging in, try to come at it with a series of clearly defined, pre-prepared questions – this will ensure that all of your research directly enhances the value of your company, rather than gaining only a vague understanding of the consumer.
Overall, key factors that will determine your entrepreneurial success are your business ability, your preparedness for the market, and the people you surround yourself and your fledgling business with. Any work you can do to improve in these areas, be that through education, networking, or research, will stand you in good stead for facing the trials of the business world.
